Thursday, May 28, 2020

Extension to pact signing

Jun 19. 2019
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UAE utility Utico FZC has extended a deadline for entering into a binding agreement with Singapore’s debt-ridden water treatment firm Hyflux to June 27, according to a Singapore Exchange filing on Tuesday.

This is two days before Hyflux is due to update the High Court on its restructuring effort.

A town hall meeting with the Hyflux perpetual securities and preference (PNP) shareholders will be arranged for the week of July 7 if the binding agreement is signed by June 27.

Utico had earlier told Hyflux it wanted a binding agreement signed by Monday for its S$400 million (Bt9.136.28 billion)investment. The embattled company is in talks with at least seven investors for a potential cash infusion and had told the court on May 29 that it planned to enter into a binding term sheet with one of them by mid-June. Its court-approved debt moratorium will end on August 2.

Utico said in a statement on Tuesday night that the decision to extend the term sheet validity was taken following negotiations between advisers of Hyflux and Utico and senior management, including Hyflux founder Olivia Lum and Utico chairman Rashed Al Balooshi.

Utico wants to acquire Hyflux as a going concern, said managing director Richard Menezes.

Its board noted that the extension to June 27 was also in the interest of stakeholders, including creditors, clients and PNP investors.

“For all stakeholders, further loss of time and uncertainty will lead to greater losses in value as well,” said Menezes.


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